Annual report pursuant to Section 13 and 15(d)

ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables)

v3.22.1
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables)
 12 Months Ended
Dec. 31, 2021
Accounting Policies [Abstract]  
Schedule of accrued liabilities
As of December 31, 2021 and December 31, 2020, accrued liabilities consists of:
 
 
 
As of December 31, 2021
 
 
As of December 31, 2020
 
Accrued compensation and related liabilities

 
3,818,701
 
 
 
3,034,688
 
Accrued interest payable
 
 
1,857,343
 
 
 
2,093,649
 
Accrued construction costs
 
 
27,045,738
 
 
 
-
 
Other accrued liabilities
 
 
3,677,671
 
 
 
3,146,478
 
Current portion of asset retirement obligations
 
 
2,530,000
 
 
 
3,716,000
 
Current portion of environmental liabilities
 
 
1,339,550
 
 
 
883,000
 
 
 
$
40,269,003
 
 
$
12,873,815
 
 
Schedule of Asset Retirement Obligations
The following table provides a reconciliation of the changes in asset retirement obligations for years ended December 31, 2021 and December 31, 2020.
 
 
 
Year ended December 31,
2021
 
 
Year ended December 31,
2020
 
Asset retirement obligations - beginning of period
 
$
21,478,977
 
 
$
-
 
Additions related to acquisition of refinery
 
 
-
 
 
 
21,901,977
 
Disbursements
 
 
(2,265,557
)
 
 
(135,000
)
Accretion
 
 
978,009
 
 
 
652,000
 
Revised obligation estimates
 
 
-
 
 
 
(940,000
)
Asset retirement obligations - end of period
 
$
20,191,429
 
 
$
21,478,977
 
 
Schedule of changes in derivative liability
The following is the recorded fair value of the Class B Units and the Warrant Commitment
 
Liability
as of December 31, 2021 and December 2020:
 
 
 
Carrying Value
 
 
Total Fair
Value
 
 
Quoted prices
in active
markets for
identical assets
- Level 1
 
 
Significant
other
observable
inputs - Level 2
 
 
Significant
unobservable
inputs - Level 3
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Class B Units 
 
$
21,628,689
 
 
$
21,628,689
 
 
$
-
 
 
$
-
 
 
$
21,628,689
 
 Warrant Commitment 
Liability
 
 
19,215,140
 
 
 
19,215,140
 
 
 
 
 
 
 
 
 
 
 
19,215,140
 
 

 
 
Carrying Value
 
 
Total Fair Value
 
 
Quoted prices in
active markets
for identical
assets - Level 1
 
 
Significant
other observable
inputs - Level 2
 
 
Significant
unobservable
inputs - Level 3
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Class B Units 
 
$
5,123,000
 
 
$
5,123,000
 
 
 
 
 
 
 
 
 
 
$
5,123,000
 
Warrant Commitment 
 Liability
 
 
-
 
 
 
-
 
 
 
 
 
 
 
 
 
 
 
-
 
 
The following presents changes in the Class B Units for the years ending December 31, 2021 and December 31, 2020:
 
 
 
Year ended December 31,
2021
 
 
Year ended December 31,
2020
 
Beginning Balance
 
$
5,123,000
 
 
$
-
 
New unit issuances
 
 
10,422,413
 
 
 
3,101,344
 
Change in fair value recognized in earnings
 
 
6,083,276
 
 
 
2,021,656
 
Ending Balance
 
$
21,628,689
 
 
$
5,123,000
 
 
The following presents changes in the Warrant Commitment 
Liability
 
for the years ending December 31, 2021 and December 31, 2020:
 
 
 
Year ended December 31,
2021
 
 
Year ended December 31,
2020
 
Beginning Balance
 
$
-
 
 
$
-
 
Value at
establishment
 
 
16,004,255
 
 
 
-
 
Change in fair value recognized in earnings
 
 
3,210,885
 
 
 
-
 
Ending Balance
 
$
19,215,140
 
 
$
-
 
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share
The following table presents instruments that were
potentially
dilutive for the years ended December 31, 2021 and December 31, 2020 that were excluded from diluted earnings per share as they would have been
anti-dilutive
:

 
 
 
Year ended December 31,
2021
 
 
Year ended December 31,
2020
 
Convertible notes and accrued interest
 
 
7,535,173
 
 
 
10,214,164
 
Convertible preferred stock - Series B
 
 
-
 
 
 
1,181,819
 
Stock options and warrants
 
 
19,567,360
 
 
 
19,317,714
 
Schedule of changes in the Lender warrant commitment liability
The following presents changes in the Warrant Commitment 
Liability
 
for the years ending December 31, 2021 and December 31, 2020:
 
 
 
Year ended December 31,
2021
 
 
Year ended December 31,
2020
 
Beginning Balance
 
$
-
 
 
$
-
 
Value at
establishment
 
 
16,004,255
 
 
 
-
 
Change in fair value recognized in earnings
 
 
3,210,885
 
 
 
-
 
Ending Balance
 
$
19,215,140
 
 
$
-